KUALA LUMPUR: The RHB Banking Group has partnered with Tenaga Nasional Bhd (TNB) to expedite the adoption of renewable energy and energy efficiency solutions among small and medium enterprises (SMEs) and individuals.
The strategic partnership complements the recently launched National Energy Transition Roadmap (NETR) towards empowering businesses, particularly SMEs, and individuals with the knowledge, tools and solutions needed to transition to greener practices.
The collaboration entails TNB to provide technical advice on energy efficiency and renewable energy solutions, including supplying and installing Solar PV systems to SMEs, prioritising RHB's SME customers and TNB's clients and business partners.
RHB will offer Green Financing Solutions comprising SME Green Renewable Energy Financing, SME Green Construction Financing, SME Green Commercial Property Financing, SME Green Working Capital Financing and SME Green Capital Expenditure (CAPEX) Financing.
RHB group managing director and group chief executive officer Mohd Rashid Mohamad said the collaboration aligns with the bank's Sustainability Strategy and Roadmap to help SMEs build a sustainable business by adopting greener practices.
"As a banking group, it is our responsibility to facilitate our customers' transition journey through the financial products and solutions we offer.
"As of June 2023, the group has approved over RM870 million in SME Sustainable Financing, of which RM103 million was Bank Negara Malaysia's Low Carbon Transition Facility (LCTF).
"We have also achieved more than RM5 billion in Sustainable Financial Services against our 2023 target of RM9 billion and a cumulative achievement of over RM16 billion, equivalent to almost 85 per cent of our RM20 billion target," he said in a statement.
TNB president and chief executive officer Datuk Baharin Din said as energy transition gains momentum, the demand for green financing is set to increase significantly due to the growing adoption of green energy solutions in the country.
He added that green financing and investment play a central role in TNB's commitment to advancing the energy transition, developing sustainable infrastructure, and fostering innovation to promote a low-carbon economy.
"We are delighted to join forces with RHB for maiden green financing facilities to encourage rooftop solar installations among SMEs and residential customers who are looking for long-term savings on their electricity bills, fostering a low-carbon economy.
"Both TNB and RHB share a common vision of assisting SMEs and homeowners in transitioning to green energy solutions for a more sustainable future," Baharin said.
RHB and TNB will jointly organise sustainability roadshows commencing in the third quarter of 2023 to engage SMEs in major Malaysian cities to promote awareness of sustainable business practices.
This is also to introduce energy efficiency and renewable energy solutions and provide advisory services and green financing solutions that support SME's transition journey in alignment with the nation's decarbonisation aspirations towards becoming a low-carbon economy by 2050.
The exchange of official documents between RHB and TNB took place during the Energy Transition Conference on August 28, 2023, witnessed by the Natural Resources, Environment, and Climate Change Minister Nik Nazmi Nik Ahmad.